Even before I had any proper knowledge in financial planning, it was already in our blood. Back in those days when Dear1 and Dear were together before our marriage, we had already started on planning our finances for our future. I remembered it was in our Uni days, probably a year or 2 into University, I started a second savings account. This account was purely for savings, for what exactly, I dunno at that point in time, but definitely it was an account to save for our future, ie our wedding, our house etc.
A few years later when the savings accumulated to $5,000, we decided to park it in a fixed deposit account so as to ‘make the money work harder for us’ at 0.75% compared to the 0.25% interest rate in those days. 1.5 years later, the FD matured but we still have no use for it, or rather it was not a ripe time for is to do anything yet, so we rolled the money for another 1.5 years.
After Dear1 proposed unexpectedly in 2005, it was pretty much still dating as usual for the then 1 year working Dear2 and Final Year Dear1, until one day when Dear2 spontaneously wiped out an empty sheet and paper and proclaim that ‘we must draw a timeline and cost to it.’ We thought about when we will get married, and buy a house, and the amount that we’ll need for the wedding, house downpayment, renovation, honeymoon etc. Some rough calculations and estimates, and some rough idea of what are the impending big ticket items, and our initially blank sheet of paper now tell us that a lot of money is needed ya. Nevermind that the figure is daunting, at least we now have a plan to work towards, and that we already have $5k ready to be deployed.
Along the way, we deflected from the original plan. Instead of having all the events at one go, we settled 1 event at a time – ROM, house, renovation, wedding, honeymoon in this order. Slowly and steadily with an income stream, plus our frugal lifestyle hinged on a systematic income and expenses control, we saw our goals falling into place 1 by 1, unknowingly.
Today as Dear1 and Dear2 are finally done with the important events of marriage, and are settling into a ‘no need to start our balance sheet from zero state’, we almost unconsciously forget to plan for our later future. Things are now getting quite dangerously comfortable for us (and how common is this the state of most people!!!). Marriage is not the only event in life, although it is one of the first few goals that most young people have to work towards. And upon the passing of that phase, there are still other important events or goals that we have to work towards, more commonly the planning for a comfortable lifestyle, now (together with baby(s)) and ongoing into our retirement.
Have you have a financial plan/ goal in place?